Missions Trip Contributions and Expenditures--a Good Plan!

Question

We would like to send our pastor on a missions trip, asking our congregation to participate in giving toward this trip. We have a separate Missions Fund to which donors can contribute. They would be instructed to make any checks payable to the church designated to this Fund.

All approved expenses for the trip will be reimbursed through this Fund. We have an Accountable Reimbursement policy in place.

Can the donors include these gifts as charitable contributions? Will the reimbursements for expenses be non-taxable to our pastor?

Answer

Well designed plan! The contributions will be tax-deductible to donors and the reimbursements for properly documented ordinary and necessary ministry travel expenses will be non-taxable to your pastor.

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MinistryCPA - Corey A. Pfaffe, CPA, LLC

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